Home ownership has become less affordable for the average Vancouverite and Canadian, however, many are still jumping into the market, a market many consumers feel is overheated.
The most recent Royal Bank housing affordability index reveals that Metro Vancouver rebounded with a 14 per cent sales increase in the second quarter and another gain of 11 per cent between June and July.
“Housing market developments in Vancouver strongly suggest that the market correction has run its course and that the risk of a catastrophic outcome has greatly moderated,” says Chief economist Craig Wright.
Vancouver remains by far the most expensive housing market in Canada.
According to the index it takes 82.1 per cent of an average income to pay the basic costs of home ownership in Vancouver. That is an increase of 2.2 percent from the previous quarter. Toronto, the next-most expensive city, sits at 54.5 per cent and is currently in one of the largest condo building booms in North America.
Citizens, it’s time to start looking into condo living. The dream of owning a detached home in the city is as good as dead for the majority of the citizens.